Securities and Exchange Commission
Litigation Release No. 17726 / September 16, 2002
United States Securities and Exchange Commission v. Charles R. Homa, Michael Gause, et al., 99 CV 6895 (N.D. Ill. October 15, 1999) (Honorable Ronald A. Guzman)
United States v. Charles R. Homa, Criminal Action No. 00 Cr. 836 (GBD) (S.D.N.Y.)
Charles R. Homa Sentenced to 5 Years in Prison and $157 Million in Restitution for Role in Cash 4 Titles Ponzi Scheme
On September 10, 2002, Charles R. Homa ("Homa"), one of the leaders of an international Ponzi scheme that defrauded more than 1,800 investors out of more than $157 million, was sentenced in Manhattan federal court by United States District Judge George B. Daniels to 5 years in prison. In addition to the term of imprisonment, Judge Daniels also sentenced Homa to pay restitution in the amount of $157 million, to serve a term of 3 years supervised release after his prison sentence is completed and to pay $500 in special assessments. This concludes the criminal case brought against Homa by the United States Attorney's Office for the Southern District of New York.
The Commission's related civil action is pending in the Northern District of Illinois. On June 27, 2002, United States District Judge Ronald A. Guzman ordered Homa and his related entities to pay disgorgement of $157,993,830.25, prejudgment interest of $35,248,523.55, and $110,000 in third-tier civil penalties pursuant to Section 20(d) of the Securities Act of 1933 and Section 21(d) of the Securities Exchange Act of 1934. Judge Guzman previously entered a permanent injunction against Homa, by consent, against future violations of the anti-fraud provisions of the securities laws, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder on March 13, 2000.
Homa, a former resident of Atlanta, Georgia, has surrendered various assets including the Cash 4 Titles properties, homes and accounts in the United States and Cayman Islands to the Receiver, Phillip S. Stenger. Mr. Stenger was appointed as Receiver in the Commission's civil case in November 1999.
For more information, go to the Receiver's website at www.cash4titles.com.